We use cookies to customise content for your subscription and for analytics.If you continue to browse Lexology, we will assume that you are happy to receive all our cookies. For further information please read our Cookie Policy.

After missing a series of self-imposed deadlines, GOP leaders have finally unveiled the FY 2018 omnibus spending legislation. The package, coming in at $1.3 trillion, will fund the federal government through the remainder of fiscal year 2018. Congress must pass the omnibus by March 23 to avoid a government shutdown. At this writing, the House is looking to take its vote on either Thursday or Friday.

Below are some quick highlights.

Tax Provisions

So-called “grain glitch fix” – Sec. 199A

Extension of the Low-Income Housing Tax Credit – expires in 3 year

A set of technical corrections from all bills prior to the 2017 Tax Act – including corrections to the partnership audit rules passed in 2015

IRS Funding

Top Line: $11.4 billion for the agency – $320 million of that amount must be used for the implementation of the 2017 Tax Act

Taxpayer Services: $2.51 billion for IRS taxpayer services

Enforcement: $4.9 billion for enforcement

Operations Support: $3.6 billion for operations support

Business Systems Modernization: $110 million for business systems modernization

Administrative Provisions:

Mandatory employee training program on taxpayers’ rights

A requirement that the IRS send notices to employers with regards to address change requests and to give special consideration to offers in compromise for taxpayers who have been victims of payroll tax preparer fraud

A prohibition on using agency funds to target groups for regulatory scrutiny based on their ideological beliefs

A prohibition on using agency funds to give bonuses to employees or hiring former employees without considering conduct and compliance with Federal tax law

A prohibition on using agency funds for pre-populated returns

A prohibition on the Department from finalizing any regulation related to the standards used to determine the tax-exempt status of a 501(c)(4) organization

Others

Extension of the National Flood Insurance Program through July 31, 2018

Extension of the FAA through September 30, 2018

Approximately $4 billion to combat the opioid epidemic

Funding details for major departments and agencies are available here.